The answer is GAAP (General Accepted Accounting Principle) for answering the question above. The managerial accounting is the financial recording process for internal usage. A company uses this information for an evaluation and prediction basis. This process must also comply with<span> the GAAP. Thus, GAAP is the most suitable answer.</span>
Answer:
$202,409
Explanation:
Firstly, we will need to calculate Break even in sales dollar for division Q using the formula;
= Division Q fixed cost / contribution margin ratio
Division Q fixed cost = $89,060
But,
Contribution margin ratio = Contribution margin / Sales
Contribution margin ratio = $161,920 / $368,000
Contribution margin ratio = 44%
Therefore, the Break even in sales dollar for Division Q
= $89,060 / 44%
= $202,409
The Break even in sales dollars for Division Q is closest to $202,409
Answer:
Compare the $315,000 cost to refinish the tables with the incremental revenue of $300,000 if the tables are refinished.
Explanation:
If the tables are sold now, they would cost $305000. If an additional $315000 is spent to refinish the table, the table would the be sold for $605000, that means there would be an additional revenue of $300000 ($605000 - $305000). The company are already operating at a loss as a result of improperly finishing the table. In deciding whether to rework the tables or sell them, the company should compare the $315,000 cost to refinish the tables with the incremental revenue of $300,000 if the tables are refinished.
Answer:
Ending RE 153,000
Explanation:
Retained Earning will be calcualte as follows:

We need to solve for the net incoem in order to solve for ending Retained Rearnings (RE)
Net Income: Revenues - Expenses
Service Revenue 280,000
Salaries Expense (62,000)
Depreciation Expense (5,900)
Supplies Expense (14,000)
Insurance Expense (14,600)
Utilities Expense <u> (20,000) </u>
Net Income 163,500
Retained Earnings 11,500
Net Income 163,500
Dividends (22,000)
Ending RE 153,000